VWAP

Volume Weighted Average Price

Volume Weighted Average Price (VWAP) calculates the average price of an asset over a specified period, weighted by its trading volume. It is used to gauge the price level where most trading activity occurred, acting as a benchmark for intraday price trends. Traders use VWAP to assess whether an asset is overbought or oversold. If the price is above the VWAP, it signals a bullish trend, while if it's below, it indicates a bearish trend. VWAP is commonly used to guide entry and exit points during the trading day.